US & Canada—The global generic drugs market is poised for substantial growth. It is projected to reach USD 594.99 billion by 2031 from USD 423.55 billion in 2023, expanding at a compound annual growth rate (CAGR) of 5.0%, according to a new report by The Insight Partners. The market surge is fueled by a wave of high-profile patent expirations, rising demand for affordable medications, and proactive government initiatives supporting the adoption of generic drugs.
Key Market Drivers
The expiration of patents for blockbuster drugs such as Keytruda, Ozempic, Eliquis, and Cosentyx is opening the door for generic alternatives, significantly reducing costs and improving accessibility. Between 2023 and 2029, over 100 critical drug patents are expected to expire, representing over USD 300 billion in global sales—creating a fertile landscape for generic and biosimilar manufacturers.
Governments around the world are also playing a pivotal role. In the U.S., programs like Medicare and Medicaid advocate for generics, while Europe mandates their substitution unless otherwise specified. In India, the Jan Aushadhi Scheme has been instrumental in delivering low-cost generics to underserved populations. These initiatives are especially crucial for countries with constrained healthcare budgets.
Market Segmentation Highlights
- By Molecule Type: Antibiotics led the market in 2024.
- By Indication: The cancer segment accounted for the largest market share in 2024.
- By Drug Type: Prescription drugs dominated the market in 2024.
- By Distribution Channel: Hospital pharmacies held the largest market share.
- By Region: North America remained the largest market, but Asia Pacific is projected to grow at the fastest CAGR through 2031.
Leading Players
Major companies influencing the global generic drugs landscape include:
Teva Pharmaceutical Industries Ltd., Mylan N.V., Dr. Reddy's Laboratories Ltd., Novartis AG, Pfizer Inc., Sanofi SA, AstraZeneca Plc, Eli Lilly and Co., and Bristol-Myers Squibb Co., among others. These players are actively launching generic alternatives and expanding global access.
Recent Developments
- Glenmark launched a generic ophthalmic solution in the U.S.
- Teva introduced an authorized generic of Victoza.
- Senores acquired a generic portfolio from Dr. Reddy’s.
- Synthon secured an investment from Goldman Sachs to expand its complex generics operations.
Conclusion
As healthcare systems globally aim to control rising costs and broaden access to essential therapies, the generic drugs market is becoming increasingly vital. The combination of patent cliffs, supportive policy environments, and increasing disease prevalence is creating strong growth momentum.
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